All About Rental Management
Few business models are as hands-off, and when working with a quality property manager, your rental properties can be passive income in the truest sense.
How do rental property managers manage rental properties? In this blog, we will go over the ins and outs of rental property management and how we take the burden of managing the day-to-day grind of property management.
Want to learn more? Keep reading!
What Is a Property Manager?
Whether you are new to investing in rental properties, or a seasoned veteran, you have probably heard about property managers. A good property manager can maximize your ROI while building relationships with tenants. They are a vital part of any real estate investment strategy, whether you hire a personal property manager or contract it out to a property management company.
Simply put, property managers are hired by a property owner to oversee and manage the daily workings of any real estate investment. Their responsibilities include everything from setting and collecting rent to filling vacant units and preparing budgets.
All in all, property managers are the lifeblood of any real estate investor. They are especially useful when investors own multiple properties or multi-unit complexes.
What Do Rental Management Companies Offer?
Because the main purpose of hiring a rental property manager is to protect your real estate investments, there are a variety of things to expect from your managers. Their job is to allow investors to take a hands-off approach with their properties, as well as lower exposure and liability.
Property managers ensure that real estate investments are productive. Therefore, they will take on the following responsibilities.
1. Ensures Laws and Regulations Are Followed
When owning rental properties, it is important to follow all landlord-tenant laws and regulations. However, it is not necessarily the easiest thing to do. Different state and local governments will have laws unique to the area. By working with a rental management company, you can avoid potential legal issues as they will be navigating them for you.
Property managers are experts in their field and should have a working knowledge of the specific requirements that need to be met to stay legal. For example, North Carolina law states that the landlord must keep the tenant informed if they are selling the property. Property managers will make sure that your tenants are informed of any changes to the ownership or lease, as required by the government.
2. Point Person for Absentee Owners
Many real estate investors are not local to their investments. In some cases, property owners will buy up property in a neighborhood, whether they live there or not. Having a local property management company will ensure that tenants' needs and concerns can be addressed, without the out-of-town owner needing to travel to solve problems.
3. Handles Maintenance Requests
As the property ages, regular maintenance and repairs will need to be made. Landscapers will need to be hired, and handymen will be called. This is the job of a property manager. Real estate investors are not likely to have the time or expertise to handle maintenance requests personally.
Property management companies typically have networks of contractors that are on the preferred list that they can contact to take care of any issues quickly.
In addition to maintenance requests, landscaping and general yard maintenance may be a perk covered in your lease. Property managers will ensure that the appropriate landscaping company is hired to regularly manage any general yard maintenance and landscaping for your tenants.
4. Markets and Leases Vacant Properties
Properties will eventually turnover for a variety of reasons. Hiring a property manager can be a valuable asset for landlords, as it can prevent financial loss from vacant units. Instead of trying to market and manage the property from a distance, a property manager can handle the process of finding and retaining tenants.
Furthermore, having a property manager available on-site can also provide peace of mind for tenants and can help to showcase the property to its full potential, which can be difficult if the owner lives out of state.
5. Tenant Screening
A time-consuming aspect of tenant screening. Property managers will work with potential tenants to ensure that they are a good fit for a property. This process typically includes verifying the tenant's income, employment status, credit history, and rental history.
A property manager will also conduct background checks to ensure that the tenant has no prior evictions or criminal history. By thoroughly screening tenants, property managers can help landlords avoid issues such as late or non-payment of rent, property damage, and other problems that may arise from having unqualified tenants.
6. Sets and Collects Rents
One of the most important jobs of a property manager is to collect and deposit rent for a real estate investor's properties. In our current economic climate, margins are thinner than they have ever been, so ensuring that cash is hitting the bank when needed is vital for any real estate investment venture.
A property manager can also assist with handling delinquent payments, collections, and evictions, which can be a cumbersome and time-consuming task for landlords who are not present on-site. By working with a property manager, landlords can rest assured that these issues will be dealt with professionally and efficiently, which can save them both money and time and also provide peace of mind.
How Much Does Professional Property Management Cost?
The cost of working with a property manager varies by company or location. Most fees fall between 8% and 12% of the monthly rent collected. While this may seem like a lot, it is well worth the cost, knowing that your property is well taken care of.
Other costs may include:
- Flat Rate Management Fee
- Maintenance Fees
- Leasing Fee
- Lease Renewal Fee
Buy Back Your Time with Asheville Phoenix Properties
Working with a rental management company can be a huge help for real estate investors who do not have the time to manage all of the aspects of their investments personally. By working with a property manager, the services rendered often outweigh the costs.
If you are ready to make the jump to hiring a company to handle all of your rental management needs, Asheville Phoenix Properties is here to help. We have over twenty years of real estate management experience and know-how to help owners and tenants by handling every area of a rental property.
If you would like to spend less time worrying about your rental properties, contact Asheville Phoenix Properties today. Our team will get to work on marketing your property, finding quality renters, and managing your property throughout the term of a lease.